Salesforce Crushes Earnings, Reaffirms AI-Led Growth Strategy
Salesforce reported strong second-quarter earnings, exceeding analyst expectations and reaffirming its confidence in organic revenue reacceleration. The company's AI-led strategy is expanding platform value rather than displacing enterprise software, according to management.
Net new annual order value growth was the strongest in four years, with attrition near record lows. Contract terms improved across segments, further supporting Salesforce's case for reacceleration.
Salesforce also raised its fiscal 2027 revenue outlook to $46.1 billion to $46.4 billion, incorporating organic performance and expected M&A contributions. Non-GAAP operating margin targets remain at about 34.3%, while operating and free cash flow growth guidance is still 4% to 5%.
Management emphasized the importance of converting AI adoption into broader platform usage and monetization, with a focus on user, consumption, and business-outcome pricing. Salesforce also plans to hire 1,200 more account executives before year-end, highlighting strong demand and pipeline growth.